Law Documents

Amending and supplying regulations on objects not liable to VAT on export products such as natural resources and minerals not yet processed into other products.

Amending, supplementing the regulations on VAT refund as follows:

Business establishments have imported goods then export to the non-tariff area or exported to outside of Vietnam, which have input VAT is equal or more than 300 million VND within month or quarter, VAT shall be reimbursed on a monthly or quarterly basis.

Business establishments will not reimburse VAT in cases good imported for exported after do not export in the geographical areas of customs operation in accordance with the customs legislation.

Amending and supplementing the regulations on non-deductible expenses upon determination of taxable incomes to calculate CIT, as follows:

Expenditures in excess of 3 million VND/month/person for deduction of voluntary retirement, voluntary retirement insurance, and life insurance for employees are non-deductible expenses when determining taxable income to calculate CIT.

On 07/12/2017, The Government issued Decree No.141/2017/ND-CP regulating the regional minimum wage for the employees under labour contracts. Accordingly, from 01/01/2018, the regional minimum wage for the employees in enterprises as follows:

Region I: 3,980,000 VND/month (increase 230,000 VND)

Region II: 3,530,000 VND/month (increase 210,000 VND)

Region III: 3,090,000 VND/month (increase 190,000 VND)

Region IV: 2,760,000 VND/month (increase 180,000 VND)

At the same time, the Decree also remain the principle of applying the regional minimum wage as follows:

The enterprise applies the regional minimum wage of the region it operating. In case the enterprise has offices, branches operating in different regions, the offices and branches apply the minimum wage in the region they operating.

The enterprise operating in industry park, export processing zone, economic zone and high technology park in different regions having the different minimum wage, applies the highest regional minimum wage.

The enterprise operating in the region where changing name or separating, temporary applies the regional minimum wage before changing or separating until the Government releases new regulation.

UPDATED NEWS_DDICG181217

Adjust minimum wage to 1.39 milion dong/monthThis is a remarkable content in Decision 1916/QD-TT in 2017 about the allocation of state budget in 2018, issued by Prime Minister.

Accordingly, from 01/07/2018, the minimum wage will be adjusted from 1.3 milion dong/month to 1.39 milion dong/month.

At the same time, the pensions, social insurance, monthly allowance under the guildance of Vietnamese law (for the beneficiaries are guaranteed by the state budget) and the allowance for the meritorious people will also increase at the same increase level of minimum wage.

UPDATED NEWS_DDICG111217

Latest import and export tariffs in 2018

The Government issued Decree No. 125/2017/ND-CP amending and supplementing Decree No. 122/2016/ND-CP, which promulgated new import and export tariffs.

Decree No. 125/2017/ND-CP will come into effect from 01/01/2018. Particularly, the contents of the tax preference programs prescribed in Article 7a shall be implemented right from the date the decree is promulgated(16/11/2017) to 31/12/2022.

Simplify the application dossier for maternity benefits

This is a remarkable issue in Resolution 125/NQ-CP on simplifying administrative procedures, civil papers related to population management under the management of Vietnam Social Insurance.

Accordingly, the application dossier for maternity benefits for female employee has dropped the request to submit copies of the following papers:

– Birth certificate of the child;

– Death certificate of the child in case of death;

– The mother’s death certificate in case the mother dies after giving birth.

In addition, the dossier for movement settlement procedure from one province to another for the recipient of pension funds, monthly social insurance benefits and waiting for receiving pension fund, monthly benefits has dropped the request to submit following papers:

On October 26, 2017 the Ministry of Finance issued Official Letter No. 14475/BTC-TCHQ to response for the problem about tax treatment on scrap and surplus materials, surplus tools of processing contracts in case of tranferring for domestic consumption, as follows:

Before 01/09/2016: For surplus materials and surplus supplies imported for processing not more than 3% of the total quantity of materials and supplies actually imported, when selling or consuming domestically, is necessary to go through customs procedures for transfering the purpose of using. However, it must be declared and paid tax to the inland tax offices according to the provisions of tax law.

From 01/09/2016 up to now: Scrap, waste products, surplus materials and surplus supplies imported for processing do not exceed 3% of the total quantity of each material and supplies imported under the processing contract, are exempted from import tax when consuming them domestically, but it must be declared and paid other taxes (if any) to the customs office.

In case of scrap, surplus materials and surplus supplies imported for processing do not exceed 3% of the total quantity of each material and supplies imported under the processing contract for domestic consumption from 01/09/2016 to the date of this document is issued, the enterprise that declared and paid tax with the local tax authority, does not require to declare and adjust

On October 18, 2017 the Hanoi Tax Department issued Official Letter No. 68151 / CT-TTHT to guide to calculate the personal income tax (PIT) for foreigners. Whereby:

In the case of foreign specialists being non-resident individuals, the company shall deduct PIT at the rate of 20% for the income from the gross pay (including effective wages paid after completion labor contract). Non-resident individuals do not have to declare tax finalization. In cases of the companies temporarily deducted PIT based on Progressive tax tariff, now they re-determined to be non-resident individuals, they shall make additional declarations in replacement of the PIT declaration forms under the guidance in Clause 5, Article 10 of Circular No.156/2013/TT-BTC.

In the case of foreign specialists being resident individuals, the company has to deduct PIT based on Progressive tax tariff. Foreign resident individuals who terminate their contracts in Vietnam must declare their finances before leaving the country.

In case individuals have not finalized PIT upon immigrating and they authorize the company to do that. The company shall settle the PIT on behalf of the individual within 45 days from the date the individual leaves the country.

After the individual had finalized the PIT and also had been no longer a resident under PIT law, if the company incurs a payment relative to effective wages to the individual, the company shall deduct 20% of income before paying for individuals.